China's aluminium ingot inventories reach 1.09M tonnes on March 30

China's social inventories of aluminum ingot across eight major consumption areas, including SHFE warrants, dropped by 38,000 tonnes over the week to 1.09 million tonnes as of March 30, a slower decline compared to the previous week's drop of 85,000 tonnes, according to the Shanghai Metals Market.

The decrease is attributed to high aluminum prices, limited increase in downstream operations, and cautious buying from downstream buyers due to a lack of confidence for future orders.

The destocking of primary aluminum inventories could extend until April due to output cuts by smelters and an increased share of molten aluminum threatening the production of ingots. Primary aluminum inventories in Nanhai saw the largest decline this week, down by 16,000 tonnes to 241,000 tonnes, followed by a drop of 13,000 tonnes in Wuxi to 411,000 tonnes.

Aluminum ingot inventories in Gongyi and Hangzhou fell by 8,000 tonnes and 2,000 tonnes, respectively, to settle at 201,000 tonnes and 68,000 tonnes. SMM reported that as of March 30, China's primary aluminum inventories stood at 1.09 million tonnes, 20,000 tonnes lower than on March 27.